CFK defends Argentina’s economic model and capacity to honour debts
While addressing the nation from the Buenos Aires stock exchange floor, Argentine President Cristina Fernández strongly defended the policy of drastically cutting debts, which guarantees “greater independence”, and of stimulating the economy because only with resources can debts be paid, “the dead don’t pay debts”.
At the Thursday evening event to celebrate the 158th anniversary of the Buenos Aires stock exchange, the president also confirmed that Argentina on Friday will be paying the 2.2 billion dollars Boden 2012 debt as the country reaches “the end of a historic cycle” which puts an end to the infamous corralito.
Corralito was the freezing of banks clients’ deposits and accounts when in 2002 the Argentine economy melted, the financial system collapsed and the country declared the greatest default in recent history. To partly compensate depositors with less than 50.000 US dollars in private banks’ accounts, the Argentine government at the time issued the Boden 2012 bonds.
But “this isn’t a reason to celebrate, but to reflect”, said CFK. “Today we reach the end of a historic cycle. I read on some newspapers that we were allegedly coming to celebrate. So I though to myself: ‘should I wear a party hat and a rattle?’ I don’t think this is a reason to celebrate, but to reflect,” she stated.
The President assured that the Government would pay the final instalment of the money that “should have been returned by the banks to the Argentine citizens” who were caught in the financial “corralito”.
“What a fantastic deal. Not once but twice they ended up keeping the population’s money,” she said as she targeted the private banking sector and investment funds. First when they did not return the money, secondly now because most of those bond holders are foreigners.
“Please, let’s not be stupid anymore. Let’s not be dumb,” she urged to population. CFK said that after the Boden 2012 payment, worth 2.2 billion dollars and scheduled to take place on Friday, it will represent a further decrease of Argentina’s foreign debt.
A 22% of the Boden 2012 bondholders are local, while 78% of them are abroad, the Head of State indicated. She praised the fact that a local union and a local bank were the main Argentine holders of those bonds, while the rest are in the hands of investment funds from the US, Luxembourg, Italy, France Denmark.
“These are the same groups that openly stated that we would never pay. They wanted to scare you to make you sell the bonds cheap and they could then reap huge profits”.
CFK later justified the official restrictions imposed by the Government on foreign currency exchange and foreign trade.
“Argentina doesn’t print dollars. The US does, and it passes on its problems to the rest of the world,” she accused, and said that Argentina obtains dollars through international tourism, foreign investments and the trade balance surpluses.
In that context, she justified her administration’s measures to “control” the foreign currency exchange market and foreign trade.
“We need dollars so our businesses can buy basic supplies in order to maintain production” she emphasized before the Stock Exchange authorities, her cabinet and even Buenos Aires City Mayor Mauricio Macri, also present.
In the speech CFK recalled how Argentina became indebted particularly during the last military dictatorship (1976/1983) and the period when Argentine imposed a One Peso/One Dollar convertibility (1991/2002), all of which ended in the 2001/02 crisis.
Argentina was only able to begin repaying with the recovery of the economy which takes place when her late husband Nestor Kirchner takes office in 2003 and in one of his first trips argued before the IMF the need of no more austerity, but rather growth because “the dead don’t pay debts”.
CFK said that Argentina’s sovereign debt ratio to GDP dropped from 168% in 2002 to 41.8% at the end of 2011. Sovereign debt in dollars in private hands fell from 92% of GDP in 2002 to 9.6% of GDP and “tomorrow (Friday) after paying Boden 2012, most probably to 8.4%”.
She underlined this was achieved mainly through debt restructuring in 2005 and cancelling all liabilities with the IMF in 2006, which was achieved with no access to global money markets. CFK emphasized that ten years ago Argentina needed 815% of its reserves to pay foreign currency sovereign debt in private hands, but nowadays it is down to 88%.
This new profile of the debt gives Argentina “an immense independence to address world market volatility and to act effectively against the club of the ‘debt tempters’” described as “those who recommend Argentina takes debt because they are sure it is the state that will end paying”.
“We must continue on the path of eliminating debts to avoid falling in the dramatic situation of the developed world, which is also having an impact on us”.
Friday’s payment of the bonds “is no merit”; it’s simply honouring an obligation even it is “meritorious for a country that defaulted ten years ago” and “virtuous for a world that is collapsing”.
CFK also blasted private banks for not making long term loans for productive activities, “the same banks that have no problems in lending to consumers in six months, six years…” She recalled banks never made so much money as with her government so it’s time to share, to help the domestic economy.
No kind words were spared for the credit rating agencies, which insist in keeping Argentina down, “despite the fact we honour debts, and despite that in 2001 they never warned about the debacle that was going to sweep the country and the people’s savings and jobs”.
The Argentine government established in this year’s budget that 5.7 billion dollars from surplus Central bank reserves will be set aside to repay sovereign debt.
Argentina’s debt and interest payments this year total 9.8 billion dollars and Friday’s with 2.2bn is one of the highest. The other large payment is next December, 3.4 billion dollars in bonds tied to the growth of the local economy.
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The less said about the 'economic model' the better.
Isn't it rather easy to simply cancel debts without borrowing money to do so? Is that an achievement to an Argentine?
Oh OK
Too bad it is too little and too late.
www.lanacion.com.ar/1495788-la-devaluacion-imposible
Out of interest can anybody tell me if there were ANY Argentines involved in the dictatorship period as it seem to me that there could not possibly have been so: the current Argentines blaming practically everything upon them and taking no responsibility for anything during that period.
Thus one can only assume the dictatorship was comprised entirely of Brits and Falklands Islanders.
Is that true?
@8 No, there were no argies involved. Everything was done by “little green men” wearing “costumes”. This includes the hundreds of thousands of aliens that congregated in the Plaza del Mayo, surrounding streets and other towns and cities. I wonder why the “aliens” didn't use their advanced science to win the war when the British Task Force arrived?
Here's the truth. argieland is composed of around 40 million war criminals. Criminals who were more than happy to use their psychoses to justify their criminal actions. Criminals who have accepted the same psychoses subsequently and are, therefore, just as psychotic as their “older” generation. Let''s not forget that argies are genocidal by nature. They seem to be inordinately proud, instead of ashamed, that there are no indigenous people left in argieland.
Really and truly, they are pretty sickening things. They must not be allowed to hide their past and pretend to be human beings.
I don't blame him, I wouldn't want my child to have a sub-standard education.
However, Gustbury, it's nice that YOU can afford all of this, but the majority of Argentine's can't.
Whose fault is that? Whose fault is it that Argentina's state schools aren't very good at educating people?
Hmm, I wonder if it's the governments fault? After all, it's the governments responsibility to run things like this. But Argentina always refuses to accept any responsibility for anything - period.
Until Argentinians as a majority oppose corruption in government, then Argentina will always be like this, living hand to mouth despite having massive amounts of natural resources, always defaulting, always in debt.
I raised the point because the CFKC hard-liners would have you believe they have a fantastic free education system and anyone with the money to use private schools is 'rich' and, therefore, the enemy.
I can only assume Gustbury's 'thanks' is for the bribes he is picking up working for the government.
The other possibility is that he is a union boss, as they are doing pretty wel at the moment!!!!
I agree but how are you going to stimulate the economy Mrs Presidente? Economic growth? No the growth is shrinking. How about capital funds? No dont have any of those? Foreign Investment? Ummm, noo struggling with at the moment. Trade surplus? Well, we have kind of pissed of the rets of the world and thats shriking to. SO you admit you made a mistake? No I defend my dead idiot of a husbands economic model and all my boot lickers opps sort I meant advsiors tell me it is working. I dont really udnerstand tho I dont really understand economics.
“Argentina doesn’t print dollars. The US does, and it passes on its problems to the rest of the world,” she accused, and said that Argentina obtains dollars through:
international tourism - shrinking,
foreign investments - shrinking
and the trade balance surpluses - shrinking.
despite the fact we honour debts, and despite that in 2001 they never warned about the debacle that was going to sweep the country and the people’s savings and jobs”.
Oh honouring your debt, you mean like in 2001 with the world slargets ever soverign deby crisis. You never paid your debts you just restructured them so you only had to pay a small percentage of what you actualy owed. even if this want true do you not believe that the credit agencies may be cocnerned about shrinking growth, rampant inflation and a govenment following nationlist measures including seizing the assets of foreign companies as well as isolating itself from the rest of the world.
don't be bad people all come back!! god bless you
hahahahaha
you will find most people here dont have a problem with the average Argentinian in the street, it is mostly the president and other politicall leaders that come in for the most stick on these boards, dont take it all personal just becouse most posters will riddicule youre president!
Why bring that up?
this forum is about Argentina, as i said earlier, dont take it all personal!
@26 Here's an idea. Despite my age (63) I am willing to travel to the South Atlantic and rip your fecking head off.
@31 Do you understand that I really want to rip your rotting guts out with my bare hands, force them down your stinking throat and then kill you slowly over a period of 48 hours? I want you to die in so much agony that you would prefer to be chopped, alive, into compost. Actually, I want to see you indistinguishable from mashed sh*te. But, most of all, I want watch, and enjoy, seeing you die. All 40 million of you!
You say:
”Some of that almost makes sense………..”
I say:
Yes it does…..........................................................., doesn’t it?
“This isn’t a reason to celebrate, but to reflect”, said CFK.
”The Boden 2012 payment, worth 2.2 billion dollars will represent a further decrease of Argentina’s foreign debt“, said CFK.
“Argentina doesn’t print dollars. The US does, and it passes on its problems to the rest of the world”, said CFK.
“We need dollars so our businesses can buy basic supplies in order to maintain production“, said CFK.
”Nestor Kirchner argued before the IMF the need of no more austerity, but rather growth because “the dead don’t pay debts”, said CFK.
Argentina’s sovereign debt ratio to GDP dropped from 168% in 2002 to 41.8% at the end of 2011”, said CFK.
”Ten years ago Argentina needed 815% of its reserves to pay foreign currency sovereign debt in private hands, but nowadays it is down to 88%”, said CFK.
”This new profile of the debt gives Argentina an immense independence to address world market volatility and to act effectively against the club of the ‘debt tempters’, those who recommend Argentina takes debt because they are sure it is the state that will end paying”, said CFK.
“We must continue on the path of eliminating debts to avoid falling in the dramatic situation of the developed world, which is also having an impact on us”, said CFK.....................
Anyhow…………
You seem as surprised about all this as Alex Betts was first time he visited the Continent and found out that we were not all Gauchos hunting down Guanacos and Ñandúes with our Boleadoras as he was taught at Malvinas School………..
Says multi millionaire president who was happily using and trading in dollars until media pressure forced her to -pesify- a significant cash holding (and likely not all of her cash holdings ) and later still to charge in pesos not dollars in her hotel.
---We need dollars so our businesses can buy basic supplies in order to maintain production“, said CFK. ----
The problem isn't the dollar - its the import restrictions and tariffs
---.....an immense independence to address world market volatility----
what exactly does that mean?
an -----IMMENSE----- independence?
If Argentina is independent and that independence is -----IMMENSE----- than -the global crisis- shouldnt be much of a problem should it?
Hyperbole bollocks.
Indeed it is surprising when something CFK says isn't complete bollocks (please note that I did say 'ALMOST makes sense'...and 'isn't COMPLETE bollocks' too).
I wouldn't be too worried though think, any shred of sanity she displays is probably temporary, she'll be back on form directly.
And I'm sure the “people minded” anglo-saxons bail out the people and not the banks...
About the only think that may garner my symphaties of other countries is the banks. I think all of the banks on the PLANET should be immediately intervened and likely EXPROPRIATED from the current administrators... put interim leadership that answers to a publicly elected authority, award some free scholarships to the upcomming banking graduates, and hand the reins to them... after the largest banks are broken into 20 pieces.
I can't believe the nations of the world continue to allow themselves to be sodomized by these funest institutions.
Yankeeboy.You really feel up there don't you.No comments on the article?Are the fiqures correct and the scenario accurate.Im sure you can find some discrepancies?
shame she's scaring away the tourists with the huge problems in crime and civil unrest, Scaring away all the foreign investments with crazy trade rules.
Many international companies have already left and many more are leaving. once they go and setup shop elsewhere will they ever come back? doubtful.
she's ruining a country for many many years to come.
Why don't you prove some of your lies?
Like solid numbers on tourism, like pictures of the supposed civil unrest.
en.mercopress.com/2012/06/09/argentina-rapidly-becoming-too-expensive-for-foreign-tourists
Fail.
I want numbers showing tourism is down because of CRIME and CIVIL UNREST.
Let's try again, duh duh duh...
You say:
“Please note that I did say 'ALMOST makes sense'...and 'isn't COMPLETE bollocks' too”.
I say:
Don't worry, I did noticed..........
“ALMOST makes sense”
&
“Isn't COMPLETE bollocks”
Are incredible positive statements coming from a gruff & shrewd Gran Malvina Kelper......;-)
en.mercopress.com/2011/08/02/is-argentina-a-safe-country-for-tourists-questions-the-french-media
This year, Chile is at a level 2 of insecurity, on a 1 to 5 sale (1 being the safest country and 5 the most insecure). Level 2 is labelled 'stable without changes'. Reasons for Chile's positive ranking include the respect for the country's police forces (Carabineros) and the punishments for petty crimes such as robberies and vehicle theft. Chile shares this position with Uruguay and Costa Rica.
Data used in the study came from local police stations and NGOs. Like in 2009, Chile's evaluation said “only a few regions show a high murder rate.” FTI Consulting says “the lack of security continues as the main concern of city dwellers and the private sector in the whole region, from Argentina to Mexico.”
High risk countries have shown no improvements since 2009. Haiti and Venezuela remain the most dangerous countries in the region, with a level 5 ranking (most insecure). Compared to last year, Venezuela's situation worsened, since it rose from level 4 to level 5.
Haiti, after the earthquake in January is also being plagued by higher delinquency. El Salvador, Honduras, Guatemala and Mexico follow closely with a level 4 ranking (high insecurity). The latter country's problems, according to the report, are mostly due to drug trafficking.
Argentina also suffers most from drug-related crimes, despite its efforts to improve the city police. It is still a high risk country with city crimes as the country's second cause of danger. FTI says Brazil, rated level 4 is handling its security problem best.
im sure figures like these, and warnings from embassies really encourage tourists!!!
Daft deluded bat, stealing the money of your own people, letting them suffer for years in poverty and then “crow” about how good to pay some back
Yawn. If you want to believe your own fairy tales that Argentina is at the same level of Haiti, Venezuela, and Mexico, you are beyond help.
What do I care anyway if you believe that, it makes you the retard, not me!
u mad
My fairy tales? lol
No need to be so butt hurt :)
Absolutely.
Though I guess I would believe you, if you also admitted the UK is bankrupt.
Oh, wait, you are bankrupt!! (stealth default, and never ending austerity and recession!)
ohhh dear
is that really the best you can do to refute those figures???
He professes to be an isolationist but seems quite happy for China and Venezuela to assume the commercial hegenomy of his independant (?) homeland
You are so full of it, all talk and no action. It's not our fault you are getting beaten by your good wife. Try talking to the authorities, although they might laugh a bit, I'm sure there's a law to save your arse :)
Aug 03rd, 2012 - 07:58 pm
Buzz. I thought you were in Uruguay?
Why wouldn't we the Falkland Islanders be the ones who are a little concerned? I think we're entitled to be. We're the ones who stand to lose our homes, not the Malvinistas. Nothing is at stake for you. Scared is way OTT though. After the intensity that CFK went at this with over the last 12 months there is clearly no legitimate way for her to get her hands on our islands. More like 'pretty interested' sums it up nicely for me. In fact I definitely get more humour out of reading Malvinista dribble on here than I get concern that CFK is making any progress.
As for the Argentine economy: I think CFK is actually doing a very good job and I would encourage her to keep it up.
And still our leader is the President of our nation :)
We are here, we are there, we are bloody everywhere :)
I happen to live in Finland, and if you so wish it, i would be more than happy to to take the ferry or plane from Helsinki to Kobenhaven, and meet up with a person like yourself, and show some, how did you put it “some action”.
Incase ur wandering, i happen to live in Turku, but have family in Vantaa, so trust me when i say that it would not be a problem to make my way to Denmark.
Mate, you know what your problem is? You guys just don't rip enough heads off, because yours are sadly enough still on your shoulders.
If you want to show your wits with your fists, try conqueror, he's witty like that...
Keep on speculating and working on your alternative realities, I'm merely in Denmark for 2 reasons, seafare and sustainable energy. Make what you want out of it, that you are good at :)
I can see that Mr.Redpoll, our “Resident Neo-Liberal Uruguayan”, has turned his “cheap points” sarcasm at you.
I have had the pleasure of exchanging some opinions with him….
(en.mercopress.com/2012/07/19/us-meats-farming-massive-use-of-antibiotics-creating-more-resistant-bacteria).....
...... until I committed the ”Sacrilege” of asking if the workers at his Uruguayan rice farm were duly registered and paid in white….
Needless to say; Inever got an answer…...............
Hils den lille havfrue for mig...........
PS:
TWIMC
To get back on topic….
The black market dollar closed yesterday under 6,10 pesos.....
With nearly no buyers….
What do you “Think” that means?
Havefruen is surrounded by Chinese people, they're everywhere :)
And for the Arg peso, great news. About time the currency becomes more than only official.
@64 I'm sorry to have to admit that I'm quite old now. Is it OK for me to smash your head with a rock? My first thought was to smash your balls, but you clearly don't have any as you can't be honest about where you are. I forgot. Argie=liar. Is it OK with you if I bring my kukri? I think I will be entitled to a trophy. Your head will be a good start. But I also fancy the idea of your 2 inch dick where you could suck on it.
@67 Been licking CFK's sh*t again? Fresh and steaming, was it?
@71 So that would be an argie seafink. Whose vessel are you stowing away on? Do the world a favour. Go clean the keel for a couple of hours and then see whether you can “surface” through the propeller arc. Can you hold your breath that long? Like I care.
@72 Thanks for identifying yourself, nazi. Please state your serial number and whether you were in the SS, the Waffen SS, the Wehrmacht or are just a civilian/descendent awaiting extermination.
@73 Always good to see stupidity.
@74 “Think” means “Twinky”. Most likely a necrophiliac, transsexual, butt-f*cking rapist. How to describe argieland? Sh*te attracts sh*te.
@75 In Copenhagen I'm sure you can find many statues with upturned hands to enable you to satisfy your perversions. If you get “moved along” try the mooring bollards aboard ship. A couple of dozen extra turns with a cable should make them fit in your butt. Except for the 2 inch all round clearance. You must should try to get satisfaction from the business end of a cannon! Tears of anticipation, assf*ck?
You think a lot about stuffing thing up people arses, don't you? You need to know that whatever that man of God did to you is NOT applicable to real life. Now, I'm sorry to hear about your experiences, but with that said at least I hope you enjoyed it :)
Thank you once again for youre great contribution to these politicall forums, youre wit, intelect and insight into politicall matters concerning Argentina is both inspiring and mezmerizing, please do keep up this sterling service.
80 scarfo. I'm thinking SussieUS has a weird thing for man-on-man porn, its very insightful into her state of mine.
Argentina has an economic model??? who would have known......
79 SussieUS
oh dear, oh dear, oh dear....................
#80, #81, #82 SussieUS is right about british homosexuals who come to Argentinas news links to get attention because the poor ugly short fat homos wouldn't even collectivly gather enough beauty to attract a pervert. This might be the reason they travel the world in search of young poor children to abuse.
#84 even dumb people have rights to free speech you are not the exception. But rights don't mean right. Good try, play again
www.fin24.com/Economy/Argentina-shows-Europe-how-its-done-20120803?fb_action_ids=417052068340409
#85 yes we have an economic model because we dont solve economic problems with austerity, I think we overcame dependency on foreign debt with support from the national bank and Argentine citizens who will be collecting interests on their loaned capital, soon there might be more Argentine's surfing the net then british.
www.fin24.com/Economy/Argentina-shows-Europe-how-its-done-20120803?fb_action_ids=417052068340409
ah the intelligent one speaks again lol
Responsibility has been taken for the Junta. You may not be aware of this but there have been a number of trials of Junta members. Given the facts and evidence I believe there should be more trails.
Common sense would suggest that you can't borrow yourself out of debt, as the debt just keeps increasing and you end up robbing peter to pay paul (just like CFK is doing at the minute).
Argentina has still to honour it's foreign debts which stand in the billions. Until it does that, no one in the world (with the exception of Chavez) would be willing to loan money to Argentina.
CFK is busy doing a very dangerous juggling act, kept up with support from Chavez, but even he doesn't have bottomless pockets.
The only way for Argentina to truly make enough money, not only to pay off it's sovereign debt but to have enough left over to benefit the lives of ordinary Argentines, is the oil and gas industries.
Unfortunately CFK's insistance on capping the prices, whilst helping the poor in the short term, will damage the poor and the rest of Argentina in the long term.
That's why no foreign investors will touch Argentina with a barge pole right now, no way to make any profit. Venezula's assistance might help, but offshore drilling is an expensive and not always successful venture. They money may run out before the black gold can be struck.
The problem is that they can see the future and it does not look good for them. As a result they are in denial and are trying to live in the 19th century.
Has a rossy arse
and likes to touch his toes
for UK men
on a row.....
This includes briton rossy arse
ConQUEEERRRRRRR yells.....
bring the baby oil
who goes first?....
the one that pays cash
one pound for the bang
briton goes first
bang bang bang
puuurrrrrrrffffffffffff
drip drip drip
in ConQUUUEEEERRRRRRR rossy arse
easy to screw by UK men
By the way................
Isolde tells Simon
you get pay one peso
for telling lies.......
to discourage SussieUS
for making comments
against ConQUUUEEERRRRRRRRRRR
the one with rossy arse...........
now is turn for old briton
to bend and touch his toes......
Old ConQUUUUEEEEERRRRRRRR
needs to ejaculate ...fast!
poor Briton rossy arse
be careful old briton
hold on...............................
here he comes
ConQUUEEERRRRRR
PuuuuuuuuuuuuuuuuuuuRRRRRRRRFFFFFFFFFFF
he did it!.....
drip drip drip
in briton rossy arse!
Who is Boudicea? No such person. Do you mean Boudica Queen of the Iceni tribe? An English tribe, and I thought you were a rabid Scottish nationalist, and here you are trying to steal other country's Queens.
Feel free to compare CFK with Cleopatra and Boudica, boths lives ended in tragedy, both killed themselves, Cleopatra using the Eygption method of a poisonous asp, rather than being taken prisoner by the Romans; and Boudica by her own sword, rather than being taken prisoner by the Romans.
CFK is free to take her own life any time she wants too, but I doubt she'll ever be remembered with the likes of Cleo and Boudica. I doubt she'll even be remembered with the likes of Eva Peron.
CFK will be remembered along the likes of Emelda Marcos.
Finding brave men and women are going to be a tough search. You can't import them.
You thought wrong, I support the Union
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